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HomeMy WebLinkAbout10. Advertise and amend agreements for the Solids Handling Facility Improvements, DP 7348 Page 1 of 9 Item 10. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: FEBRUARY 18, 2021 SUBJECT: RECEIVE UPDATE AND ANNOUNCE THE ADVERTISEMENT FOR BIDDING OF THE SOLIDS HANDLING FACILITY IMPROVEMENTS, DISTRICT PROJECT 7348; AND AUTHORIZE THE GENERAL MANAGER TO AMEND TWO EXISTING PROFESSIONAL ENGINEERING SERVICES AGREEMENTS TO INCLUDE AS-NEEDED SUPPORT SERVICES WITH: • MWH CONSTRUCTORS, INC. IN AN AMOUNT NOT TO EXCEED $150,000, INCREASING THE AGREEMENT COST CEILING TO $1.1 MILLION; AND • ARCSINE ENGINEERING I N AN AMOUNT NOT TO EXCEED $250,000, INCREASING THE AGREEMENT COST CEILING TO $975,000 SUBMITTED BY: INITIATING DEPARTMENT: NATHAN HODGES, SENIOR ENGINEER ENGINEERING AND TECHNICAL SERVICES- CAPITAL PROJECTS REVIEWED BY: EDGAR J. LOPEZ, CAPITAL PROJECT DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES Roger S. Bailey General Manager ISSUE Due to the significance and costs of this project, staff will provide a status update to the Board of Directors (Board) and be available for questions or comments before advertising the project for bidding. Board authorization is also required for the General Manager to execute an amendment to a professional engineering services agreement for amounts greater than $200,000. BACKGROUND The Solids Handling Facility Improvements, District Project 7348 (Solids Project) began in 2017 when staff recommended to combine five separate capital projects from the Fiscal Year (FY) 2016-17 Capital February 18, 2021 Regular Board Meeting Agenda Packet- Page 68 of 147 Page 2 of 9 I mprovement Budget (CI B) and brought forward three additional projects in the same year's budget due to the interdependency and complexity for each of the solids processes. The Solids Project represents one of the largest and most challenging construction projects since the treatment plant (plant), as it is known, was expanded in the 1970s. The Solids Project is listed as the highest priority project in the C I B and is needed to meet safe, reliable, and regulatory operations for the solids processing at Central San and includes the following major elements: • Sludge blending and storage— new optimized and energy efficient mixing systems; • Sludge dewatering — centrifuge and cake pump equipment replacement and upgrades; • Incinerator modifications— burner upgrades, new center shaft drives and combustion air blowers; • New air pollution control equipment— replacing the wet scrubbers with up-to-date equipment that was proven under pilot testing conditions; • Solids Conditioning Building (SCB) and incinerator seismic modifications; • Ash Handling Facility— new enclosed facility adjacent to the Emergency Sludge Loadout Facility (ESLF), and removal of the deficient existing system within the SCB; • ESLF upgrades — completed under a separate project for sludge loading and hauling; • Emergency stairway—for the safety of the SCB occupants and construction is already in progress under a separate project; • Major electrical, instrumentation and controls (El C) coordination and replacement with the new systems, including a newARC flash resistant electrical room; and • Construction sequence and constraints for all the impacted systems and operations, including allowing a 12-month period to shut down the incinerators and off-haul sludge. Clean Water State Revolving Fund(SRF) Funding: The Clean Water SRF program is a federal-state partnership that provides communities low-cost financing for a wide range of water quality infrastructure projects. Staff has been coordinating and working with the State for SRF funding for this project for over a year. Central San received approval for additional funding to satisfy all estimated construction expenses which totals $173.1 million. The agreement to secure SRF funding consists of an initial agreement that sets the funding ceiling and is executed in advance of project award. I n December 2020, staff submitted updated project documents in support of receiving the initial agreement prior to advertising the project, and recently received notice that the initial agreement is expected to be ready for Central San's execution in April 2021. Upon successful bidding and award of the project, the final construction budget will be established, and a final SRF agreement will be executed. Contractor Pre-qualification: On September 3, 2020, pre-qualification documents were posted for general contractors (GCs) and electrical subcontractors (ECs). Staff received responses from seven GCs and eight ECs.After a thorough evaluation of the submitted qualifications, all GCs and ECs were informed they qualified for bidding the project. An informational update meeting was held via Microsoft Teams for all pre-qualified contractors on January 20, 2021. Staff presented the updated bid schedule, available items such as the model, construction estimate, and other pertinent information for the project.A brief video of the 4-Dimensional (4D) sequence and schedule model was shared to demonstrate the elements and complexity of the construction proposed under the contract. Other contractor pre-qualifications were considered, such as seismic or furnace subcontractors. However, staff elected to include the qualifications as part of the experience requirements listed under the bid requirements. February 18, 2021 Regular Board Meeting Agenda Packet- Page 69 of 147 Page 3 of 9 Project Bid Schedule: The project is scheduled to be advertised on February 22 and March 1, 2021. The bid opening is scheduled at the end of April 2021 but may be extended into May, depending on questions or input from bidders, to allow all bidders ample time to prepare a bid for the project. Staff plans to present the project for award in July or August of 2021. The bid schedule anticipates a two-month bid evaluation including SRF review. The project documents, bid forms, and security shall include a 120-calendar day period in which bids cannot be withdrawn to accommodate the SRF review, which is common practice for these types of large SRF funded projects. M WH Constructors, Inc. (M WH)Agreement Revision: MWH was hired in January 2020 to provide construction management services for the project. The scope of services includes constructability review, assist with pre-bid services, and construction management for the Solids Project. MWH has reviewed various design submittals, conducted constructability reviews, performed schedule analysis, and provided cost estimates and alternative shutdown scenarios for the project. MWH has been an active participant in workshops, project meetings, and other critical efforts to assist Central San to prepare and understand the construction impacts of this major endeavor. MWH's input and work has been critical in confirming the construction cost estimate and providing comments to improve the construction documents for contractor bidding and constructability. MWH and Central San estimated the construction cost to be $110 million. Additional authorization is needed for MWH to continue their pre-bid support services. The identified services needed at this time include: 1. Review of final submittal used forbidding; 2. Additional constructability input needed during bidding; 3. Support for contractor questions related to the estimate, schedule model analysis, and project sequencing for potential shutdowns and electrical work; 4. Assist with front-end contract document changes, if needed; and 5. Provide supplemental services to assist staff during bidding with site inspections, tracking bid questions and designer changes. MWH is already on-site at the plant assisting with construction management of the Filter Pant and Clearwell Improvements — Phase 1A Project and assisting with the Solids Project bid will be an efficient use of time and will be done on an as-needed basis. Aresine Engineering (ArcSine)Agreement Revision: ArcSine's agreement to provide as-needed electrical engineering support was executed in February 2019 and they are under agreement through 2023. Their work supports all capital projects, especially pump station projects, the Steam Project, and the Solids Project.ArcSine provides important supplemental electrical and control system engineering support since Capital Projects has a single electrical engineer supporting all projects in design and construction, as well as Operations on many occasions. The plant's control systems group is equally occupied with maintaining the existing plant control system infrastructure and making improvements. This as-needed agreement has been used to support the Solids Project and additional services are anticipated to support staff's efforts to bid or provide supplemental information needed for bidders. This revision will provide the budget to continue support for the Solids Project and other Central San needs for the remainder of the agreement duration. February 18, 2021 Regular Board Meeting Agenda Packet- Page 70 of 147 Page 4 of 9 Black& Veatch Corporation (B&19 Agreement: B&V, along with HDR, I nc. and Degenkolb Engineers, are the project's Design Engineers. On August 20, 2020, the Board authorized an increase of$350,000 to the existing agreement for bidding services; no additional fees are being requested under the designer agreement. ALTERNATIVES/CONSIDERATIONS The Board could consider the following alternatives or provide other direction. Agreement Revisions The Board could elect to not authorize the revisions to the MW H and ArcSine agreements. Staff would have to find alternative solutions which is not recommended since the Capital Projects Division does not have the staff to reassign during the bid schedule, nor the software expertise for the project scheduling and modeling being done by MW H. Also, there is only one Central San electrical engineer with the experience sufficient for this project. ArcSine understands Central San's electrical standards and has the staff with the necessary experience to provide supplemental services needed for this project. FINANCIAL IMPACTS On August 6, 2020, the Board authorized staff to submit an updated SRF Loan Application to the State Water Resources Control Board for the full project costs of $173.1 million. The total estimated project costs include planning, $1 million pilot testing of the new air pollution control equipment, pre-design, detailed design, consultant costs, construction estimate ($110 million), construction management, and contingency. To date, Central San has spent approximately$16 million to construct the early release projects and for the work leading to the final design and bid package. Once, the bids are received and Central San has determined the final contract price from the lowest and responsible bidder, the total project estimate will be adjusted. M WH The current cost ceiling is $950,000. The proposed revision of $150,000 will bring the cost ceiling to $1.1 million. A subsequent revision will be brought to the Board at time of project award for other construction management services. ArcSine The current cost ceiling is $725,000. The proposed revision of $250,000 will bring the cost ceiling to $975,000. A subsequent revision will be brought to the Board at time of project award for supplemental services to support Central San staff. COMMITTEE RECOMMENDATION The Engineering & Operations Committee reviewed this item at its February 9, 2021 meeting and recommended approval. RECOMMENDED BOARD ACTION Authorize the General Manager to amend two existing professional engineering services agreements under the Solids Handling Facility Improvements, District Project 7348 to include as-needed support services, as follows: 1. MW H Constructors, Inc. in an amount not to exceed $150,000, increasing the agreement cost ceiling to $1.1 million; and February 18, 2021 Regular Board Meeting Agenda Packet- Page 71 of 147 Page 5 of 9 2. ArcSine Engineering in an amount not to exceed $250,000, increasing the agreement cost ceiling to $975,000. Strategic Plan re-In GOAL ONE: Customer and Community Strategy 1—Deliver high-quality customer service, Strategy 2—Maintain a positive reputation GOAL TWO: Environmental Stewardship Strategy 1—Achieve 100% compliance in all regulations GOAL FOUR: Workforce Development Strategy 4—Meet or exceed industry safety standards GOAL FIVE: Infrastructure Reliability Strategy 2—Execute long-term capital renewal and replacement program, Strategy 3—Protect personnel and assets from threats and emergencies GOAL SEVEN:Agility andAdaptability Strategy 1—Maintain a safe working environment for employees and the public during the COVID-19 pandemic ATTACHMENTS: 1. Presentation February 18, 2021 Regular Board Meeting Agenda Packet- Page 72 of 147 SOLIDS HANDLING FACILITY IMPROVEMENTS DISTRICT PROJECT 7348 ADVERTISING FOR BID Board Meeting February 18, 2021 Jean-Marc Petit, P.E. Director of Engineering and Technical Services Edgar J. Lopez, P.E. Capital Projects Division Manager Nathan Hodges, P.E. Senior Engineer, Special Projects ME SOLIDS HANDLING FACILITY IMPROVEMENTS (SOLIDS PROJECT 1 2 2 3 4 5 6 7 8 06 � I Y EXISTING SLUDGE MULTIPLE AIR POLLUTION ASH HANDLING EMERGENCY CENTRIFUGE SOLIDS DIGESTER BLENDING/ HEARTH CONTROL AND LOADOUT SLUDGE DEWATERING CONDITIONING DEMOLITION STORAGE FURNACES LOADOUT SYSTEM BUILDING SEISMIC RETROFIT 2 1 SOLIDS PROJECT STATUS • Total State Revolving Fund (SRF) -� f Funding Estimate- $173.1 Million (M) $110 M District construction estimate ' Construction duration = 1,400 calendar days Informational meeting held with pre- qualified contractors on January 22, + 2021: Presented bid timeline, 4- -� Dimensional schedule model, and other information that contractors will be able to receive + � 3 CENTRALSAN t PROJECT BIDDING SCHEDULE Bid opening through award dates are subject to change: Advertise February 22 and March 1, 2021 Site Visits March 1 —April 23, 2021 Bid Opening April 28, 2021 Bid Evaluation including April 29 —July 5, 2021 SRF Engineering & Operations July 13, 2021 Committee Review Board Award August 5, 2021 4 CENTRALSAN 2 PROJECT SUPPORT NEEDED • MWH Constructors, Inc.: • Sequence and schedule support for model. • Assist in front-end documents. Assist staff during bidding with site r. visits and tracking correspondence and changes and other services. I • ArcSine Engineering: • Assist Capital Projects(CP)with review of electrical and controls i rN items and questions. f' • Supplement staff since CP has one person with skills needed for , this project. • Provide other services as needed. s CENTRALSAN RECOMMENDED BOARD ACTION Authorize the General Manager to amend two existing professional engineering services agreements for as- needed services as follows: 1. MWH Constructors, Inc. in an amount not to exceed $150,000, increasing the agreement cost ceiling to $1.1 million; and 2. ArcSine Engineering in an amount not to exceed $250,000, increasing the agreement cost ceiling to $975,000. I' 6 3 QUESTIONS? CENTRALSAN 4